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HomeHealth and Safety CodeDiv. 101Pt. 1Ch. 3Art. 1§ 100350 Contract Payment Timing Relief

§ 100350 Contract Payment Timing Relief

Health and Safety Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 100350 Contract Payment Timing Relief

This law lets the health department give early money to small nonprofit groups for certain health projects, but only if the contract is $200,000 or less and the early payment is no more than 25% of the contract.

Key Takeaways

  • •Only contracts $200,000 or less qualify for advance payments.
  • •Advance payments can never be more than 25% of the contract amount.
  • •If federal law says no advance payment, the department must follow that rule.

Example

A tiny nonprofit that runs a feeding program for babies signs a $120,000 contract with the department.

The department can give the nonprofit up front money, but the most it can give is 25% of $120,000, which is $30,000. The rest is paid later as the work is done.

How to Calculate

Advance Payment ≤ 0.25 × Total Contract Amount (and contract must be ≤ $200,000)

  1. Make sure the contract amount is $200,000 or less.
  2. Multiply the total contract amount by 0.25 (or 25%).
  3. The result is the highest amount the department can pay in advance.

Contract for a rural health program worth $180,000.

Result: Advance Payment maximum = 0.25 × $180,000 = $45,000

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 100350 Contract Payment Timing Relief

The Legislature finds that many programs of the department are hindered by the length of time required for the state to execute contracts and pay vendor claims. These programs include, but are not limited to, community hypertension, rural health services development, family planning, genetic counseling, supplemental feeding program for women, infants, and children, sickle cell disease and newborn screening projects. This hardship is particularly felt by new or small community-based public or private nonprofit agencies with modest reserves and cash-flow problems. It is the intent of the Legislature that advance payment authority be established for the department in order to alleviate those problems for those types of contractors to the extent possible. Notwithstanding any other provision of law, the department may, to the extent funds are available, provide for advance payments for services to be performed under any contract, with a total annual contract amount of two hundred thousand dollars ($200,000) or less, that the department determines has been entered into with any small, community-based public or private nonprofit agency with modest reserves and potential cash-flow problems. These programs include, but are not limited to, the following: (a)  Community hypertension. (b)  Genetic disease programs. (c)  Supplemental feeding programs for women, infants and children. (d)  Sickle cell disease. (e)  Newborn screening projects. (f)  Rural health programs. (g)  Indian health programs. No advance payment or aggregate of advance payments made pursuant to this section shall exceed 25 percent of the total annual contract amount. No advance payment should be made pursuant to this section if the applicable federal law prohibits advance payment. (Added by Stats. 1995, Ch. 415, Sec. 3. Effective January 1, 1996.)

Last verified: January 11, 2026

Key Terms

advance payment authoritysmall, community-based public or private nonprofit agencymodest reservescash-flow problemstotal annual contract amount of two hundred thousand dollars ($200,000) or less25 percent of the total annual contract amount

Related Statutes

  • § 101175 Public Health Funding Assistance
  • § 101180 Population Determination Rules
  • § 101185 Local Health Department Definitions
  • § 101675 Santa Barbara Health Authority Act
  • § 101680 Regional Health Authority Formation

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Health and Safety Code. Section 100350.
View Official Source